Light olefins
Overview
The global light olefins market is made up of ethylene and propylene monomers. These product markets can be affected by a great many factors.
Ethylene is the most widely used commodity chemical and is produced globally in all major regions. It is converted into many products used in daily life like plastic packaging, durable goods, hygiene products and other consumer items. The ethylene market is driven primarily by regions of low production cost and regions of high demand growth. Polyethylene, ethylene’s largest derivative, represents about 65pc of global ethylene demand. Anyone involved in the ethylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Propylene is the second most widely used commodity chemical and is produced globally in all major regions. Propylene is a volatile commodity because of its predominantly co-product nature and unpredictable supply, but recently the industry has been trending to more on-purpose production. It is converted into many products used in daily life like plastic packaging, durable goods, automotive products, and woven fabrics. Polypropylene, propylene ’s largest derivative, represents about 70pc of global propylene demand. Anyone involved in the propylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Our light olefins experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global market.
Latest light olefins news
Browse the latest market moving news on the global light olefins industry.
EU readies new bioenergy strategy
EU readies new bioenergy strategy
Brussels, 26 November (Argus) — The European Commission is today expected to adopt a new strategy aimed at boosting "nature-positive" investment and making better use of biomass. The latest version of the strategy seen by Argus deleted wording from a previous leaked draft that mentioned disincentivising "inefficient" biomass combustion, including changes to EU and national subsidies to avoid prioritising combustion over material use. Industry groups last month had criticised the previous draft strategy for "punishing" biomass combustion and ignoring the role of sustainable biofuels. The commission may still amend the current strategy document, which sets out a direction for policies but is not itself a legal proposal. Demand for biofuels will likely rise from 2025, in part thanks to the bloc's ReFuelEU Aviation and FuelEU initiatives, but sustainable biomass remains finite and its use is most effective in hard-to-abate sectors, the commission said in the document. The commission wants to add value to energy, industry, food, health and other sectors through biomass processing and biotechnology. The body said it would, for example, support uptake of bio-based plastics and novel materials by 2027 alongside recycling. Officials could also assess whether EU-wide definitions could support certification and scaling of bio-based polymers. And an EU methodology could certify long-lasting biogenic carbon storage in buildings under the carbon removal and carbon farming certification framework. The commission will issue legislation such as the upcoming BioTech Acts to bolster industrial production of bio-based chemicals and may target bio-based content requirements in some products. In the strategy, the commission and the European Investment Bank will use finance instruments to support biorefineries that incorporate new technologies. And a forthcoming Circular Economy Act aims to support biogas and biomethane production as well as using digestate as a fertiliser. A review next year of the bloc's emissions trading system will also explore potential for scalable biogenic carbon, capture, use and storage projects. The EU is also scheduled to review its Renewable Energy Directive by 2027 and assess how national biomass support schemes affect biodiversity. Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Unipar sees lower 3Q profit on sluggish petchem cycle
Unipar sees lower 3Q profit on sluggish petchem cycle
Sao Paulo, 14 November (Argus) — Brazilian company Unipar Carbocloro, South America's largest producer of polyvinyl chloride (PVC), reported a net profit of R107mn ($20.2mn) in the third quarter of 2025, 9pc below the same period last year. The results were primarily driven by a downturn in the petrochemical cycle and a persistent imbalance between global supply and demand. Unipar's average plant utilization rate remained at 80pc in Brazil and reached 67pc in Argentina, both impacted by temporary reductions in operations due to weak demand at certain times during the quarter. Chief executive Rodrigo Cannaval noted mounting pressure on Brazil's domestic PVC market from imports, particularly from Colombia and Egypt, alongside weak demand in Argentina amid President Javier Milei's macroeconomic reforms. International caustic soda and PVC prices decreased 11pc and 5pc, respectively, compared to the second quarter, curtailing Unipar's adjusted recurring earnings before interest, taxes, depreciation and amortization (EBITDA) of R266mn, which also suffered negative effects from currency appreciation in Brazil, even though the company's cash flow is mostly tied to the US dollar. Annually, adjusted recurring EBITDA increased 14pc, from R233mn, mostly due to higher volumes of caustic soda and chlorinated products, offsetting 15pc lower sales of PVC. PVC accounted for 40pc of the company's revenue in the quarter, followed by caustic soda (39pc) and chlorinated products (21pc). Additionally, Unipar's Capex should be significantly smaller next year, Cannaval said during the company's third-quarter earnings conference call, given that the modernization of the Cubatao plant is nearing completion. It is the company's most relevant ongoing project, he said, and affected both gross and net debt in the quarter. The Cubatao plant has production capacity of 355,000 metric tonnes (t)/yr of chlorine and 400,000 t/yr of caustic soda. Unipar introduced new PVC pricing after Brazil increased antidumping duties on US imports to 43.7pc from 8.2pc. But Cannaval said PVC demand in Brazil continues to lag amid elevated interest rates. The petrochemical firm posted net revenue of R1.2bn, 8pc below the same quarter the previous year. Unipar's net debt hit R1.5bn, 275pc above R459mn reported a year ago. By Isabela Mendes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Brazil’s US PE AD duties barely dent imports
Brazil’s US PE AD duties barely dent imports
Sao Paulo, 12 November (Argus) — Brazilian polyethylene (PE) imports in January-October 2025 were only mildly affected by the government's recent anti-dumping duties for resin produced in the US ($199.04/t) and Canada ($238.49/t), with the US still the top PE seller to the country. Brazil's PE imports hit $1.36bn in the period, a 3.7pc decrease compared with $1.41bn in the same period in 2024, according to official Brazilian trade data. Import volume also showed a small decline from 1.25mn t in 2024 to 1.22mn t in 2025, a 2.3pc drop. The US remained the leading supplier, accounting for 68.2pc of total PE sales, exporting 832,611t in 2025 until now, down 7.4pc compared with the prior year. Argentina increased its share to 14.4pc in volume, positioned as the second-largest exporter with 176,375t year to date, a 31.1pc increase compared with the same period in 2024. Canada's share fell to 3.77pc in volume, totaling 46,018t year to date, a decline of 39.7pc. The total export volume for PE between January and October 2025 was 522,903t, a 7.5pc increase from the same period last year, when it reached 485,978t. In terms of values, sales for the 10 months of the year hit $654mn, a slight decrease of 0.84pc year on year. Argentina was the main buyer, increasing its share to 20.1pc and shipping 105,246t, up 22.5pc in volume year to date. Belgium came in second place with 65,871t, amounting to 12.6pc of total exports market share and marking a 11.9pc hike on annual comparison. Third was Chile, with PE purchases of 63,131t and a 12pc share, despite the decrease of 8.08pc on a yearly basis. Closing the top four, China had an 8.64pc market share and total imports of 45,171t year to date, a 5.55pc yearly comparison growth. By Isabela Mendes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Braskem 3Q sales down, eyes feedstock switch
Braskem 3Q sales down, eyes feedstock switch
Sao Paulo, 11 November (Argus) — Brazilian petrochemical company Braskem faced a turbulent third quarter in 2025, marked by operational challenges, strategic uncertainty and efforts to reposition its feedstock strategy. Menwhile, the company is navigating a potential restructuring and sale while managing the fallout from the closure of its chlor-alkali operations in Alagoas and ongoing low utilization rates across its production assets. Braskem completed technical studies on using liquefied petroleum gas (LPG) derivatives — specifically propane and ethane — sourced from Argentina's Vaca Muerta shale formation as a feedstock, the company said during its third quarter earnings call. Preliminary data suggest a potential cost reduction of $110/t compared to petrochemical naphtha, which is currently used in several of Braskem's facilities. The company already uses propane from Vaca Muerta at its Copesul plant in Triunfo, Rio Grande do Sul, where trials are underway to assess long-term viability. Feedstock selection will depend on pricing and logistics, with other Argentinian raw materials also under evaluation, chief executive Roberto Ramos said. The shutdown of Braskem's chlor-alkali plant in Alagoas between September and October led to layoffs and added pressure to its vinyls operations. To stabilize this segment, Braskem announced a strategic agreement with US-based Olin for the supply of ethylene dichloride (EDC). The deal supports Braskem's chlor-alkali and vinyl asset restructuring in Brazil. While supply volumes were not disclosed, the company expects the partnership to enhance competitiveness and sustainability in its PVC operations. Olin was selected for its cost-efficient EDC production, based on US shale gas ethane, and favorable logistics. Ramos cited these factors as decisive in formalizing the agreement. Average utilization rates across Braskem's petrochemical complexes fell to 65pc in the quarter, down 9 percentage points from the subsequent quarter and 8 points from a year prior. The decline was driven by scheduled maintenance at the Rio de Janeiro complex and a strategic reduction in naphtha-based production amid weak demand. Operational idle time costs the company approximately $60mn per quarter, Institutional relations director Rosana Avolio estimated. Braskem Idesa PE sales fall In Mexico, PE sales through the Braskem Idesa joint venture fell by 30pc year on year to 146,000t, mostly because of lower product availability, while spreads in the international market remained stable. Braskem Idesa's plant utilization rate fell to 47pc, down by 27 percentage points from a year earlier, because of a scheduled maintenance shutdown and reduced ethane supply from Mexico's state-owned Pemex, which fell to 11,300 b/d from 28,900 b/d in the previous year. The company's new ethane terminal, Terminal Quimica Puerto Mexico (TQPM), began supplying ethane to Braskem Idesa. TQPM, still in the commissioning phase, received approximately 11,300 b/d. The ethane supply from TQPM the Braskem Idesa plant is now operating above nominal capacity, which should support Ebitda growth in the coming quarters, Ramos said. Resin sales, prices down Braskem's Brazil resin sales fell by 9pc to 787,000t in the third quarter from a year before, with volumes also down in the US, Europe, and Mexico. International resin price references during the period were lower, impacting the profitability of its domestic sales, Braskem said in its preliminary third-quarter production and sales report. The company posted a R26mn ($4.9mn) loss for the quarter, narrowing from a R592mn loss in the third quarter of 2025 and from a R267mn loss in the second quarter this year. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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